Introduction to building customer loyalty online

[Music]
it's time to think back
if you're taking the courses in order
you'll remember discussing the role
loyalty plays in marketing and
e-commerce as a refresher loyalty is the
last stage in the marketing funnel after
awareness consideration and conversion
in short during the loyalty stage
customers become repeat customers and
brand advocates ideally they become
voices of the brand in this section of
the course you will review how loyalty
is created in e-commerce business
explore loyalty strategies and tactics
like rewards programs and dynamic
remarketing and learn techniques
businesses use to develop relationships
with their customers
i hope you're as excited as i am let's
get started
[Music]
what comes to mind when you think about
loyalty
maybe it's a family pet maybe it's a
commitment to your favorite sports team
or maybe it's a relationship with
someone in your life whatever comes to
mind it likely involves a strong feeling
of support or allegiance
we demonstrate loyalty when we form an
emotional attachment to someone or
something
in relationships loyalty is built on
trust it's fostered by a sense of
belonging and community and it motivates
people to stay connected
in ecommerce loyalty is built the same
way
as a refresher loyalty is the last stage
in the marketing funnel
loyalty is where customers become repeat
customers and brand advocates
loyalty is based on the trust that a
customer places in a business
and when customers feel a sense of
community and connection to that
business their loyalty becomes even
stronger let's consider some of the ways
you can build loyalty
you may remember learning about some of
these strategies earlier in the program
but now we're going to examine how they
apply to e-commerce
first let's talk about building trust
in e-commerce you can build trust by
making sure to offer quality products
that meet your customers needs
providing a quality guarantee upholding
a generous return policy and offering
free shipping and returns can help build
trust by removing the customer's worries
that the product might not meet their
expectations
in order to build trust you also need to
provide quality customer service
throughout the customer journey
including after the customer has made a
purchase
another important way to build trust is
to protect customers personal and
financial information customers need to
know that you'll keep their information
confidential and secure that could mean
adding a trust badge or seal to the
checkout page and ensuring customers
that their email address won't be shared
with other companies
why is this important
when customers trust a business they're
more likely to become loyal customers
and loyal customers are the building
block for a strong brand
now let's talk about building loyalty by
creating a sense of community and
belonging
if customers feel a sense of connection
with the business they're more likely to
become loyal
in e-commerce you can nurture a sense of
community online by engaging with
customers on social media
you can also encourage customers to
share their experience with other
customers through user generated content
this might involve customers writing
product reviews uploading photos or
videos
engaging in the question and answer
section on a product page or joining a
forum
you can also build a sense of community
by sharing the story behind your brand
and demonstrating how your values align
with customers values
according to research 77 of consumers
buy from brands who share their values
customers want to feel good about their
purchase for example connecting with
customer values could mean sharing a
passion for the outdoors caring for the
environment or advocating for change in
society's perception of beauty
another way to connect with customers
values is by donating a portion of sales
to communities in need
for example a company that sells
clothing might donate a pair of socks to
a homeless shelter every time someone
makes a purchase on their site
a program like this not only
demonstrates the company's values and
action but it allows customers to be
involved in doing good as well finally
you can build loyalty by making it easy
for customers to stay connected
one way to do this is by offering
customers a subscription for products
they might buy on a regular basis such
as razors vitamins or printer ink it's a
good idea to give customers the ability
to choose how often they want the
product delivered and make the
subscription easy to cancel so that
customers don't feel locked in
another way to stay connected is through
dynamic remarketing which allows you to
show previous visitors ads that contain
products and services they viewed on
your site
since these ads are specifically
tailored to your customers they create a
personalized experience focused on
products or services that the customer's
already shown an interest in
email marketing is another way to stay
connected with customers it gives you
the opportunity to deliver valuable
content based on a customer's interest
for example you can use data to
personalize email campaigns by sending a
reminder email if someone abandons their
cart or by suggesting products related
to a product the customer already
purchased
you can also use email as a helpful
reminder such as letting the customer
know when it's time to reorder contacts
or flip the new mattress they bought
another popular way to stay connected is
through a rewards program sometimes
called a loyalty program that creates
incentives for customers to return to
your business you'll learn more about
rewards programs later
building loyalty happens over time as a
company demonstrates that it cares about
its customers you can do this by
building trust creating a sense of
community and making it easy for
customers to stay connected
although loyalty is the last stage in
the marketing funnel it's one of the
most valuable opportunities for a
company to grow happy customers are more
likely to come back and they're more
likely to tell others about your
business
next up you'll learn more about
strategies for building loyalty in
e-commerce
meet you again soon
[Music]
a good loyalty strategy is designed to
create repeat customers and increase
conversion rates
one of the most effective loyalty
strategies are rewards programs
often called a loyalty program a rewards
program is a marketing method designed
to build customer loyalty by providing
incentives to returning customers
these incentives can include but aren't
limited to
free products free shipping discounts
coupons or even cashback for purchases
before we talk about some common types
of loyalty programs let's discuss where
ecommerce customers might first
encounter them
since it's in the best interest of
companies to get customers returned to
make more purchases it is up to them to
make the enrollment process as simple as
possible there are two common and easy
ways ecommerce businesses prompt
customers to enroll in loyalty programs
the first is with pop-up messages that
appear on a customer's screen within the
first couple of seconds of visiting a
website
they usually offer an incentive for just
signing up and entering an email address
the second rewards program enrollment
method comes at the end of an online
purchasing journey this method is more
subtle while completing their purchase
customers can choose to enroll in a
rewards program and receive future
offers
it's common for businesses to
automatically enroll customers in
rewards programs that are at no cost to
the customer
in these cases the customer must
specifically opt out of the rewards
program a benefit of automatic
enrollment is that it helps the brand
create a larger customer base quickly
however a drawback could be that it
weakens trust in a brand since some
customers believe that it was done
deceptively now that you know what a
rewards program is and how customers can
enroll let's discuss different types
in the e-commerce industry the most
common rewards programs include points
programs spend based programs tier-based
programs and subscriptions
there are other types of rewards
programs that exist but for now let's go
deeper into each of these
a points model is a rewards program that
offers customers a point equivalent for
a determined monetary value spent over
the course of several purchases
these points can be redeemed for an
incentive once a customer reaches a
certain number of points for example a
kitchenware ecommerce store may offer
customers one point for every dollar
they spend
when customers reach a hundred points
the business rewards the customer with a
free bowl next are spendbase programs a
spend based model is a rewards program
that offers customers incentives based
on an amount spent during a single
purchase
they are similar to points based
programs in that they encourage
customers to reach a certain spending
goal in order to achieve an incentive
however these programs focus on getting
a larger short-term value for example an
online retailer may offer customers free
shipping on all purchases more than a
hundred dollars alternatively a
tier-based model is a rewards program
that allows customers to graduate to new
customer status levels based on the
amount of money they spend with a
company over time
the more money they spend the higher
tier they gain access to and the better
benefits incentives they are offered
for example a company might offer three
customers three tiers
bronze if they spend below 50
silver if they spend between fifty and a
hundred dollars in gold if they spend
over a hundred dollars with every
purchase range a customer will receive
better rewards offers
the final type of common rewards
programs is a subscription program
unlike the other programs mentioned a
subscription model is a rewards program
that requires customers to make a
recurring payment in order to receive an
exclusive incentive
for example an online clothing retailer
may offer next day delivery for
customers who pay an annual fee of
twenty dollars customers who don't pay
for this program will have to wait the
standard week for their shipment to
arrive
if the rewards program is a paid program
like in a subscription program
businesses should never automatically
enroll customers in an unwanted service
instead businesses should include
separate messaging to allow customers to
explore the details of the rewards
program on their own during another time
by now i'm sure the concept of rewards
programs seems pretty simple right
if a business offers some type of
incentive then customers will return in
the future to make more purchases
however this is just the basics there
needs to be more consideration that goes
into creating a successful rewards
program that isn't just focused on
one-off reminders that your company
exists
by this i mean short-term promotions
alone don't always lead to true customer
loyalty
even if your company offers great reward
program incentives there may be other
companies with better prices on similar
products
this may cause those customers that you
considered loyal to switch where they
choose to buy without hesitation to
create more effective and successful
e-commerce rewards programs
businesses should consider the following
four questions
first
how can we personalize our rewards
program experience
personalization is about making an
experience tailored to an individual
many businesses achieve this by using
tactics like including the customer's
name in all program communications and
interactions
this makes customers feel valued for
example a hobby of mine is running and
i'm a member of a variety of rewards
programs for different sports apparel
brands
if two of these brands send me emails
about their new sneaker launches i'm
more likely to open the email that says
hi mike check out our new shoe launch
over one that says check out our new
sneakers since the first one feels more
personal to me
another tactic is providing incentives
to groups of customers based on their
shopping habits
for example if data shows that a
customer usually waits until there's
free shipping before buying sending them
a just because offer for free shipping
encourages them to shop this will also
help them be more willing to make an
additional purchase
second how can a rewards program be both
desirable and attainable
rewards programs work best when they
have offers that are attractive enough
for customers to want to be a part of
the program but also easily accessible
for customers
for example a customer's rewards program
that requires customers to spend a
hundred dollars for a small discount
like five percent off their next
purchase
isn't as desirable as a rewards program
that requires customers to spend a
hundred dollars for 25 on their next
purchase
finding the right balance can be hard
but it is a must for attracting return
customers third
ask yourself how can we create community
within our customer base well customers
may only be looking for products to buy
some of them enjoy feeling like they are
part of something bigger
fostering community outlets for your
company can be a great way to ensure
that those customers stay loyal to your
brand
for example a book company could just
sell novels
but after a customer buys a book it
could be hard to predict if the customer
would return after they've completed it
instead they could create a virtual book
club as a part of the rewards programs
that way the customer will find a
like-minded community that shares an
interest in books just as much as they
do
every time they purchase the new novel
it would likely be through the bookstore
that the rewards program is a part of
keeping these considerations in mind are
a great start to creating a loyal
customer base that believes in and
values a business
move on to continue learning more about
creating and retaining loyal customers
[Music]
have you ever been shopping online got
distracted by something and forgot to
finish what you started
or maybe you found an item you liked
online but weren't quite ready to buy it
dynamic remarketing with google ads is a
way to re-engage customers who have
viewed products on your site previously
these customers are familiar with your
store and have considered buying a
product but for some reason they haven't
completed their purchase yet
maybe they need more time to make a
decision or maybe they need to be
reminded that your product or deal is
too good to miss
either way dynamic remarketing helps you
re-engage these customers and drive
loyalty by displaying ads that feature a
personalized message that's tailored to
your audience
this type of remarketing engages
visitors who have already started
thinking about making a purchase from
your store
it encourages these visitors to return
to your store and complete their
purchase dynamic remarketing works by
displaying ads for products that
customers have already viewed or similar
products they might be interested in
the google ads product recommendation
engine determines the best mix of
products display for each ad the result
is a personalized experience that
features products based on popularity
and with the visitor viewed on your site
showing products that are similar to the
one a customer already viewed can help
them discover products they might have
found otherwise
maybe the product they viewed previously
wasn't quite what they hoped to find but
a similar product would be just what
they wanted
let's imagine an online jewelry store
for example with customers that might be
considering a big purchase
these customers might need extra time to
make their decision they might also want
to shop around for the best quality
product in the best deal
using dynamic remarketing the jewelry
store can display ads for products a
customer viewed on their site as well as
similar products the customer might like
by connecting with the customer in this
way the jewelry store can keep their
brand in front of the customer as the
customer moves through the process of
making their purchasing decision dynamic
remarketing is an effective way to
connect with customers because you're
reaching out to customers who are
already interested in your products and
motivated to buy these customers may
have also purchased from your store in
the past
dynamic remarketing allows your store to
retain these customers and encourage
them to continue their relationship with
your business
it's one of the ways an ecommerce store
can build loyalty and stay connected
with their customers over time
coming up you'll learn more about
building relationships with your
customers meet you there
[Music]
in this video we'll discuss methods for
following up with your existing
customers as well as tips to doing so
effectively the act of following up with
customers is called post-purchase
communication it's defined as any direct
interaction customers have with the
brand after they make a purchase
since returning customers often make up
a large portion of a company's ecom
sales
post-purchase communication focuses on
building relationships with existing
customers these communications are an
effective way to boost traffic to your
online store
they can also help your business stay in
the minds of your customers and ahead of
your competitors post-purchase
communication doesn't only benefit your
store it can make the customer feel like
they made the right purchasing decisions
this can lead to an increase in brand
loyalty and advocacy as well
have you ever made a purchase online
only to feel like you made a mistake
once the transaction was complete
that sense of regret after having made a
purchase is called buyer's remorse and
according to a report over 50 percent of
online shopper survey respondents share
they have experienced buyer's remorse
post-purchase communication can help
ease these feelings by reinforcing
positive feelings about the customer
experience let's discuss how
first there are a few post-purchase
communication methods
the ones you'll start off with are
emails social media and direct mail
starting with perhaps the easiest method
for reaching your existing customer base
emails are extremely popular for
post-purchase communication
this is in large part due to the variety
of aspects you can include in your
emails here are a few examples of
different types
first there are thank you emails that
provide short and nice follow-up
sentiments that show your appreciation
for their business
thank you emails often make customers
feel that a business truly appreciates
them making a purchase
there are also review request emails
essentially these emails have two jobs
they provide necessary data on your
customers experience with your brand
and if it's positive it provides a
glowing endorsement of one of your
products
another email type is a customer
satisfaction survey this type of email
usually lets customers rate products
using some type of scale system customer
satisfaction surveys are intended to
measure how products and services meet
or surpass customer expectations
and lastly a company may choose to send
replenishment emails
replenishment emails are used to prompt
customers to make a repeat purchase when
the items they previously bought are
about to run out
these emails are highly effective for
example if a customer is about to run
out of their favorite lavender shampoo
they purchased on an online site two
months ago they may forget to order it
again
but if they receive a convenient message
letting them know that it's time to
purchase a new bottle they'll be more
inclined to do so at that moment
okay we've reviewed emails now let's
discuss our next post-purchase
communication methods social media
social media is a great way to reach
your customers with the popularity of
hashtags on various sites you can always
check to see what conversations your
brand is a part of
for example let's imagine that a
baseball fan creates a social media post
that includes a photo of them
wearing a new hat they just ordered
online from a company named johnny
johnny john sportswear in the post they
even decide to tag the company
if the company keeps up with hashtags
and mentions they'll be able to see this
mention quickly
the company can respond directly to the
customer and share they're happy that
the customer is satisfied with the
purchase additionally with the
customer's permission they can even
repost the photo on their page
this could spark even more interest in
the brand from people who follow either
the company or the customer
the last method for delivering
post-purchase communication is via
direct mail
sending letters or brand information
through the mail certainly predates the
other two mentioned previously however
mail delivery can have a classic charm
that is unmatched by digital methods
this is because some customers believe
that it shows that the company puts
thoughtfulness and care into it
this method can be more time consuming
but for some it's greatly appreciated
whatever method you decide on you want
to remember a few tips to make it
effective and have your customers come
back
first always personalize the experience
you want your relationship with your
customers to feel intimate
greet them by their actual names instead
of referring to them using formal name
fillers like customer or resident you
can also add a personal element to the
customer business relationship by
reaching out to them on days that
they've identified were important like
their birthday
next pace your communication
i'll admit it as an online shopper i can
get pretty frustrated when i receive
multiple messages from brands
instead remember to pace your
communication so that your customers
aren't overwhelmed by the onslaught of
messages from your brand
and the last tip is to offer customers
incentives to shop
offering discounts or free money can be
a great way to encourage customers to
return to your online store
not only does it let customers know you
want them to shop but lets them know
that you appreciate their business
as you continue to build relationships
with your customers remember that your
communication should always strike a
balance between promotional and engaging
you want your audience to feel that you
are being genuine and sincere while also
growing your business good luck
[Music]
surveying your customers is a way to get
the feedback you need from your
customers it helps you understand their
needs as well as their interests in this
video we'll discuss customer surveys and
how you can ask effective questions to
get necessary information a customer
survey is a tool to measure how products
and services supplied by company meet or
surpass customer expectations as an
e-commerce professional these surveys
are valuable because they can help with
the growth your business
customer surveys can help you learn
demographics like general age where
customers live and work or customer
interests and hobbies and issues
customers had related to their shopping
experience
this type of data will help you to
create a better idea of who your
customers are
when you analyze your results you'll be
able to better reach and communicate
with groups of customers based on this
information there are two customer
survey categories a pre-purchase survey
is a survey conducted before a purchase
is made
in a post-purchase survey is a survey
conducted after the customer has checked
out
before you begin creating your survey
it's important to define your goal
aimlessly recreating questions to ask
your customers could result in a lot of
random data to avoid this ask yourself
what do i want to learn from my
customers this could be things like how
do i improve my customer retention rate
or
what parts of my website need
improvement once you've defined your
goals it's time to move on to create
clear and concise questions for your
survey there are many tips for creating
your great survey questions here are a
few
first
avoid asking leading questions
leading questions nudge your
participants to answer a certain way
for example asking you like our website
right
pressures the customer into answering
yes
simply based on the way the question is
framed these questions can cause you to
receive biased data
instead try asking open-ended questions
like
on a scale of one to five rate your
shopping experience today
then follow up with an open forum that
asks them to explain their answer
secondly avoid providing answer options
that overlap
it can cause confusion if there are two
possible correct answers
for example if a 35 year old is trying
to answer the question how old are you
but the only answer choices are a
between 25 and 35 or b between 35 and 45
they may be at a loss for which option
is right for them
instead write the options as a between
25 and 34
in b between 35 and 44.
that way the only correct answer is b
third be respectful and inclusive
as e-commerce specialists it's important
to recognize that asking personal
questions can be a sensitive and
challenging space to navigate so be
conscious and mindful of the specific
questions surveys and how you ask them
and lastly remember to make sure that
you use your brand sona voice
this refers to how your company chooses
to express itself for example let's
imagine a clothing store for kids that
has a playful and adventurous brand
if they create a customer survey using a
formal greeting like dear sir or madam
please take time to complete our
customer survey
some customers may be confused by the
seriousness of the tone instead they'll
want to go something like hi there do
you mind completing our customer survey
notice the difference that makes
the second one creates a welcoming tone
that the customers recognize
and appreciate
keep these tips in mind as you're
creating questions once you're ready
start creating your questions
these will range based on your industry
pre-purchase survey questions will
likely include questions that seek to
understand who the customer is and what
they're shopping for for example who are
you shopping for or
which of your products or categories are
you most interested in
post-purchase survey questions will
include questions that want to
understand how the customer experience
was
these will be questions like
what is one thing we can improve about
our website experience or
do you anticipate purchasing from us
again in the future
post-purchase survey questions can also
include questions that get customers to
provide information about themselves
this helps you target them in the future
so they can return to your website
these include questions for event
promotional opportunities like when is
your birthday or questions related to
brand advertising like
on a scale of one to ten how likely are
you to recommend our company to a friend
after scripting all of your questions
for your survey complete the following
checklist for each question
is the wording using this question
simple and easy to
understand questions that use jargon can
confuse your customers so instead opt
for simple language
does this question ask too much personal
information
if so the customer might feel that their
privacy is being invaded
change the question to be more general
is this question too complex
these can be questions that involve
multiple sentences or steps to complete
and can make a user quit the survey
prematurely
review what items can be cut before
finalizing your questions
and lastly
does this question make an assumption
about my customer
for example if you're an e-commerce
specialist for a handbag store
do some of your questions assume that
your customers identify as women based
on the wording
if so change the question to fit a more
neutral audience
when you're ready you can make your
survey live on your website or send it
by email once you get enough completed
surveys use the data to build your
customer list and implement changes to
your buying or marketing experiences
have fun creating great survey questions
[Music]
hi there before we start i have a great
quote for you
it reads
courteous treatment will make a customer
a walking
advertisement these words were said by
famous american entrepreneur james cash
penny
of course jcpenney didn't literally mean
your customers would become an official
promotional tool
he meant that building a great shopping
experience for your customers will make
your shoppers feel so good that they may
choose to shop at your store again they
may even recommend your business to
people they know
globally 61 of consumers view customer
service as very important and customer
service recently overtook price and
product as the main factor that set
brands apart while shopping
customer service is defined as the
advice and support a company provides to
its customers before during and after a
purchase a great shopping experience
includes how a brand approaches customer
service with so much emphasis placed on
customer service let's explore ways
you'll implement great customer service
into your ecommerce business
the first thing you'll need to decide is
which channel you'll use to provide
support for your customers here you have
a few options the most common customer
service channel for many business owners
is email
most ecommerce businesses provide an
email address or contact form on their
store's website that customers can use
to ask for support
in fact google requires businesses to
list their email clearly on their site
in order to advertise on google shopping
you can use your email inbox to keep
track of your customer communication
emails are also a great way to manage
the customer's expectations on how soon
they'll receive a response
you can state your expected reply type
in the description of your contact us
section on your store's website
another common customer service channel
is live chat
live chat is customer service technology
that allows customers to communicate in
real time with a business representative
if a customer has a question about
anything they can have it answered in a
moment's notice
be aware this method is often used by
larger companies who have the resources
and budget to answer questions around
the clock
chat bots are a similar customer service
channel they offer direct customer
business communication technology on the
company's website however unlike live
chat chat bots are programmed systems
that respond to common customer
questions chat bots are helpful because
they provide a quick response to user
questions
however they aren't equipped to handle
complex interactions since they can only
offer pre-programmed responses to
specific questions
in the fourth customer service channel
you may use is social media this
exciting platform is constantly evolving
with the rapid increase in popularity
during the 2010s it's clear that social
media is a communication tool that is
here to stay to keep up many brands have
begun providing customer service
directly through platforms like twitter
and facebook
if brands have their own social media
accounts they have the option of
responding directly to customers
publicly or privately if you choose this
route for your business it's best to
offer customer service on social media
platforms where you already have a
presence or those used most by your
customers this will help you consolidate
your customer communication efforts
the great thing is that you don't have
to be limited to just one customer
service platform
you can opt for a strategy that includes
multi-channel customer service which is
providing customer service across
multiple channels
if you're taking the courses in the
program and order you may remember
learning about this strategy when it
comes to providing quality customer
service it's important to interact with
customers in the way they choose whether
it's through the four channels we just
covered or other channels like phone
support or forums
no matter which channels you choose it's
important to keep four key customer
service aspects in mind
get the issue resolved quickly
resolve it in one interaction
provide friendly customer service
throughout
and follow up afterwards to ensure your
customer is satisfied
to understand these aspects let's
imagine manal who loves the color green
or is a green winter coat from the
e-commerce store frosty flossy outerwear
but when it arrives there's a problem
the shop actually shipped a blue coat
instead
menaul has the option of choosing to
chat live with the brand representative
in a live chat on the store website
or she can find the customer service
email address listed on the company's
website instead she chooses to create a
social media post about the mistake and
tags of the company
keeping our four customer service
aspects in mind the company responds
within just a few hours of receiving a
notification
using kind welcoming language the
company acknowledges the mix-up and
offers to communicate privately to
resolve the issue
using direct messages the company
promises to correct the issue and offers
a coupon discount on menaul's next
purchase
once the new code is delivered the
company can reach out to menaul to see
if she is satisfied with her new code
and just like that the issue is solved
and the customer is happy again
of course resolving customer complaints
is just one aspect of customer service
another aspect to consider is providing
customers with all the information
necessary to make a purchase
one of the ways you can do this is by
creating a page on your website for
frequently asked questions or faqs for
short
these pages provide extensive knowledge
of the questions your customers might
have regarding your business products or
services policies processes and more
faq pages are helpful because they save
you time and responding to general
questions customers may have
build trust between brands and customers
since faq pages demonstrate that your
business has already considered common
buyer scenarios questions and concerns
in-faq pages can even bring new traffic
to your website this is because of
google's featured snippet section on
some search pages when users search a
question related to one of your faqs
your question and response is
automatically pulled from your faq page
that has been indexed by google
quality customer service is important to
the success of any business including an
e-commerce store even though you may not
end up working in the customer service
department your job in e-commerce will
likely impact the customer experience in
some way knowing the issues that
customers face and taking their feedback
into consideration can help you improve
the customer experience okay that wraps
up providing excellent customer service
as you go forward remember to keep the
words of james cashpenny and the
customer in mind
congratulations on finishing this video
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e-commerce certificate access the full
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